Identifying high-potential employees (HiPos) isn’t just about performance. It’s about predicting future leadership capacity and investing in it early. For executives aiming to future-proof their organizations, the ability to identify and develop high-potential talent is one of the most important strategic skills you can master.
But how can you be sure you’re recognizing true potential and not just rewarding current success or charisma?
At Leadership Worth Following, we’ve spent decades researching leadership effectiveness and helping Fortune 500 companies build pipelines of leaders who drive lasting impact. In this blog, we explore how to identify high-potential employees, what traits to look for, how to avoid common mistakes, and how to develop that potential into meaningful leadership.
Why High-Potential Employees Matter
High-potential employees are the foundation of your future leadership. They are the individuals capable of stepping into key roles, guiding teams through change, and inspiring performance at every level.
According to Gartner, HiPos exert 91 percent more effort and achieve 53 percent higher performance than their peers. Despite this, most companies struggle to accurately identify and retain them. Research shows that up to 70 percent of HiPo programs fail to deliver ROI. The issue is not the talent itself, but the flawed processes used to recognize and support it.
The first and most essential step is to clearly and accurately identify high-potential employees.
What Does “High Potential” Really Mean?
High potential is not the same as high performance. While high performers consistently succeed in their current roles, high-potential employees are those who can grow into roles of greater complexity, scale, and leadership.
At Leadership Worth Following, we define high-potential employees using three dimensions:
- Ability: Cognitive capacity, learning agility, and problem-solving skills
- Aspiration: Motivation to lead and take on more responsibility
- Engagement: Commitment to the organization’s mission, values, and goals
When these three traits align, you likely have a high-potential employee.
High-Potential vs. High-Performing: What’s the Difference?
It is a common mistake to assume your highest-performing employees are also your highest-potential leaders. But performance and potential are not the same.
High-performing employees are essential to your current success. High-potential employees are essential to your future. Knowing the difference helps ensure you are developing leaders, not just rewarding output.
Traits to Look for in High-Potential Employees
To identify high-potential employees, look for indicators beyond just metrics or charisma. True potential shows up in subtle but consistent ways.
- Curiosity: They ask smart questions, challenge assumptions, and care about the why.
- Resilience: When things go wrong, they bounce back without blaming others and set an example of composure and adaptability for others.
- Influence: Even without a leadership title, teammates listen to and respect their opinions because they’ve earned that trust.
- Growth Mindset: They actively seek feedback and use it as an opportunity for growth, and not as a personal attack
- Strategic Thinking: They look beyond their role, asking about the bigger picture: strategy, customers, and how everything fits together.
Above all, and possibly the most important trait is staying steady when work becomes challenging or difficult. They go above and beyond adapting to helping others find their footing, which is called learning agility, and it’s one of the best signs someone’s ready to lead.
Tools for Identifying High-Potential Employees
Instead of trusting your instincts, create a strategy for identifying leaders that is based on structure and intention. Start with research backed tools and processes that look at more than job performance:
- Talent Reviews and Assessments: Pair internal reviews with objective assessments like 360 feedback, cognitive testing, and leadership simulations.
- Manager Nominations with Criteria: Allow managers to nominate candidates, but provide clear rubrics to reduce bias.
- Stretch Assignments: Give employees complex or unfamiliar projects that reveal how they learn and lead.
- Development Planning: Track growth over time. Repeated success in stretch roles is a strong indicator of potential.
Using a combination of tools helps you get beyond assumptions to get real results that lead you closer to the truth.
What to Assess: Capacity, Commitment, and Character
Once you’ve committed to a real assessment process, the next step is knowing what to assess. In our proven Worthy Leadership Model, we focus on three leadership constructs that separate high-potential leaders from the rest:
1. Capacity to Lead: What a Leader Can Do
This construct examines the leader’s fundamental skills and abilities, including:
- Problem-solving and decision-making capabilities
- Strategic thinking and visioning
- Communication effectiveness
- Adaptability in changing circumstances
- Industry and business acumen
Key questions this construct answers:
- Can they analyze complex situations and make sound decisions?
- Do they effectively see and communicate the bigger picture?
- Can they inspire and align others around a shared vision?
2. Commitment to Lead: What a Leader Wants to Do
This construct explores the leader’s motivations, passions, and driving forces:
- Dedication to excellence and continuous improvement
- Investment in building meaningful relationships and talent
- Curiosity and desire for professional growth
- Service to stakeholders
Key questions this construct answers:
- Do they demonstrate passion for delivering exceptional results?
- Are they genuinely invested in developing people and relationships?
- Do they show commitment to personal growth and learning?
3. Character to Lead: What a Leader Will Do When No One is Watching
This critical construct assesses the leader’s ethical foundation and personal integrity:
- Honesty and transparency in communications
- Moral courage to uphold principles even when difficult
- Humility, gratitude, and forgiveness
- Consistency between stated values and actual behaviors
Key questions this construct answers:
- Do they consistently demonstrate integrity and keep commitments?
- Will they advocate for what’s right, even at personal cost?
- Do they show appropriate humility and acknowledge others’ contributions?
Common Mistakes to Avoid
When identifying high-potential employees, watch out for these common pitfalls:
- Confusing Performance with Potential: Your top performer may not have the aptitude or desire to lead.
- Overlooking Quiet Talent: Potential is not always loud or charismatic. Look beyond personality to find substance.
- Letting Bias Creep In: Without clear criteria, decisions can be influenced by affinity, background, or familiarity.
- Failing to Follow Through: Identification is only the first step. Without development and support, HiPos can disengage or leave.
Developing High-Potential Employees
Once identified, high-potential employees need support and development to grow into leadership roles:
- Personalized Development Plans: Create growth paths tailored to individual strengths and opportunities.
- Mentorship and Sponsorship: Connect them with leaders who can guide and advocate for their growth.
- Visibility and Challenge: Give access to executive projects, decision-making opportunities, and exposure to complexity.
- Ongoing Conversations: Regularly check in to discuss goals, challenges, and feedback.
Turn Potential into Long-term Impact
Identifying high-potential employees is not just a talent strategy. It is a long-term business strategy. When you assess based on capacity, commitment, and character, you move beyond surface-level traits and build a leadership pipeline rooted in trust and impact.
At Leadership Worth Following, we partner with organizations to identify, develop, and support leaders who are truly worth following. If you are ready to strengthen your leadership bench, we are here to help.
Contact us today to build leadership worth following! Click here to schedule your free consultation, submit a contact form through our website, or send us an email at hello@worthyleadership.com